gold vs bitcoin
For centuries investors have moved savings into gold to protect and control their wealth from centralised banking institutions. In recent years cryptocurrencies such as Bitcoin have seen a significant rise in popularity due to their decentralised status away from banks.
Bitcoin has certainly seen its fair share of excitement in the past fews years and at its market peak, cryptocurrencies have generated small fortunes for some investors. While everyone loves a bit of hype and jumping on the bandwagon for the ride, with great gains comes the risk of great falls.
“While the value of Bitcoin is currently that much higher than gold, it’s the volatility of cryptocurrencies that should worry potential investors.“
While gold may not be as exciting as Bitcoin, gold has certainly stood the test of time. Whether it is held in person or stored securely, gold gives physical access to a source of true value. Bitcoin on the other hand in its modern digital world has fallen prey to hacking and theft. For this very reason gold is still considered the ultimate safe haven.
For investors looking for long term safety gold is certainly the preferred choice. During times when inflation is higher than the interest set by the Bank of England, it creates a position of negative real interest rates. This means that fiat currencies such as the GBP devalue while the cost of living continues to rise.
Gold bullion is the ideal escape from this because its value increases in line with inflation. While the value of Bitcoin is currently that much higher than gold, it’s the volatility of cryptocurrencies that should worry potential investors.